The Maharashtra Authority of Advance Ruling (AAR) received the application from the manufacturer of the transformers that were supplied to Indian Railways stating that the transformers are included under HSN‘8504’ and Sr. No. 371 of Schedule III of the notification 1/2017, that invited the levy of Goods and Service Tax (GST) at 18%.
The applicant here is Rishabh Industries that is behind the manufacturing of the transformers, panels and magnetic compound supplied to the Indian Railways that is authorized by Research Design and Standard Organisation (RDSO). Rishabh Industries supplied the transformers with the intention to aptly equip the passenger coaches. Transformers are used as a primary element in generating the electricity for A/Cs, lights, charging points, fans, etc. to function in the passenger coaches.
Inputs such as super enamelled copper strips and wires, electrical steel cold rolled grain oriented silicon steel lamination, stainless steel and other insulating items that are used in the transformers are attracting 18% GST. The application filed by the manufacturers sought clarifications on the issue that whether the transformers that are supplied to the Indian Railways will be presumed as a ‘part of railway or tramway locomotives or rolling stock i.e. HSN ‘8607’ and in turn invite 5% GST on the supply or will be categorized under HSN ‘8504’ making the supply subject to 18% tax levy?.
Maharashtra AAR (Authority for Advance Rulings) 
